In the long run, all factors of production are

The above figure shows a firm in monopolistic competition. What is the profit maximizing level of output the firm will produce?

A) 4 units per day B) 8 units per day C) 10 units per day D) 16 units per day

If the current unemployment rate is 5%, under which of the following circumstances would you expect the Fed to use contractionary monetary policy?

A) if the inflation rate is above 5% B) if the inflation rate is below 5% C) if the natural rate of unemployment is below 5% D) if the natural rate of unemployment is above 5%